2013 Equitable L&C Rate Decrease

[rousemark]

Equitable L&C did not have a rate increase in 2012 and now has reduced rates for 2013. These rates are for Tennessee.

[FONT=Verdana, Arial, Helvetica, sans-serif]New Lower Rate examples: Age 65 Non Smoker (lowest rating area), rate/mo.

Female (Old Rate) $140.67Female (New rate) $109.09........Male (Old rate) $161.84Male (New Rate) $125.50[/FONT]

 

[jacobtn]

Interesting. Still higher than phil american depending on which plan you're quoting, but will have a reason to look at them now that they are in the ballpark. They are a nice carrier to work with.

 

[somarco]

That's roughly 22% reduction. I am always suspicious of that kind of move.

Are the reductions only on new business or will in force policyholders benefit as well?

 

[rousemark]

That's roughly 22% reduction. I am always suspicious of that kind of move.

Are the reductions only on new business or will in force policyholders benefit as well?

Appears to across the board:

[FONT=Verdana, Arial, Helvetica, sans-serif]Inforce Modernized Business

We did not have a rate increase on our 2070 plan in 2012 and the Really Good News is for 2013 we are lowering premiums by 12%. Policyowners get the same great Equitable service, they just pay less. Policyowners will begin being notified of their new premiums shortly.

I will welcome the decrease as they have my personal MS since I could not qualify for Phil. Amer.

The email blast I received was addressed to [/FONT]:

[FONT=Verdana, Arial, Helvetica, sans-serif]All Active Equitable Agents in Tennessee

so I don't know if they are reducing rates in other states..

Commissions are reduced to 18% with just a flat $25.00 fee for GI business. Wouldn't think agents would be soliciting turning 65 clients with them.

I don't understand why they state a 12% decrease. My calculations match yours.. It is 22%. Perhaps the inforce rate will not be the same as the new issue rate?

They administer Heartland and the new rates are about the same as Heartland's. Perhaps the fact that the Heartland CEO is now the EL&C CEO has soemthing to do with this change?


[/FONT]

 

[somarco]

Commissions are reduced to 18% with just a flat $25.00 fee for GI business. Wouldn't think agents would be soliciting turning 65 clients with them.

That's a good way to scare off business.

My calculations match yours.. It is 22%. Perhaps the inforce rate will not be the same as the new issue rate?

Possible. I didn't get the memo. Might be a good question to ask upline.

 

[senior-advisor-indiana]

They just lowered my commission to 14.75% effective 2-11-13. I will no longer be offering them. I just contracted with them less than a year ago at 22%. They dropped it to 18% after 2 months and now this. They can KMA...

 

[tins]

They just lowered my commission to 14.75% effective 2-11-13. I will no longer be offering them. I just contracted with them less than a year ago at 22%. They dropped it to 18% after 2 months and now this. They can KMA...

They did that to me as well.
I started at close to 15% levelized (in Missouri, that's great).
Then, they pushed it down to 12.5%, now it's a touch under 9...I rarely, rarely write them anymore.

 

[senior-advisor-indiana]

They did that to me as well.
I started at close to 15% levelized (in Missouri, that's great).
Then, they pushed it down to 12.5%, now it's a touch under 9...I rarely, rarely write them anymore.

I will only be sending them people that can't qualify anywhere else.

 

[scotte]

I will only be sending them people that can't qualify anywhere else.

Is their underwriting really easy?
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Question for the ones who got their commission rate dropped. Is it just on new business or also on older polices?

 

[Millwood]

They are lowering the rates on existing policyholders as well.
That was my first thought will they try to lower commision rate as well. I understand commision will go down because the premium is smaller, but they better not try to change the rate they are paying on old business.

BTW I can make 35- 40% more writing other companies. They had better get ready for adverse selection. The only business they will get from me are things I can't place anywhere else.
Diabetics, Rhematoid,Chronic breathing conditions not treated by Oxygen. They are trying to shave the agent and it's will bite them.